Ezra Merkin Creates Ascot Partners LP and Ascot Fund Limited, Which are Managed Almost Exclusively by Bernard Madoff

Around this time Madoff connects with Ezra Merkin, a well-known Wall Street money manager and philanthropist.

In 1990, Merkin gives Madoff "a significant portion of the assets" of two of his hedge funds -- Ariel and Gabriel -- to manage, which Madoff does through 1992. In 1992, Merkin creates Ascot Partners LP and Ascot Fund Limited funds, which are managed almost exclusively by Madoff through 2008.

Ezra Merkin, the former chairman of automaker GM's finance arm, and the founder of the $5 billion Gabriel Capital Group, allegedly defrauded his investors and breached his duties to them by losing $2.4 billion in client money that he funneled to $50 billion Ponzi scheme master Bernie Madoff, despite having told investors he was managing the money himself, according to a civil suit filed against him by New York's Attorney General, Andrew Cuomo.